Document background
The Master Netting Agreement is essential for entities engaging in multiple financial transactions with the same counterparty under Belgian law. It reduces credit risk by allowing parties to net their mutual obligations, both for regular payments and in default scenarios. This document type is particularly important given Belgium's implementation of the EU Financial Collateral Directive through the Belgian Financial Collateral Law, which provides strong legal protection for netting arrangements. The agreement typically covers various financial instruments including derivatives, securities lending, and repurchase agreements, while ensuring compliance with both Belgian domestic law and relevant EU regulations. The Master Netting Agreement includes specific provisions required under Belgian law to ensure enforceability, particularly in insolvency scenarios, and addresses requirements for regulated financial institutions.
